Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information (Tables)

3 Months Ended

12 Months Ended

Mar. 31, 2013

Dec. 31, 2012

Condensed Consolidating Statements of Comprehensive Income

Condensed Consolidating Statements of Comprehensive Income (Unaudited)

For the three months ended March 31, 2013

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust - ments		Consolidated
Net sales	$	—		$	117,158		$	6,340		$	20,421		$	—	$	143,919
Cost of sales		—			56,315			4,499			12,832			—		73,646
Selling, general and administrative expenses		399			40,302			1,307			6,361			—		48,369
Acquisition and integration expense		—			1,640			14			375			—		2,029
Depreciation		—			5,348			15			179			—		5,542
Amortization		4,515			772			—			159			—		5,446
Intercompany administrative (income) expense		—			(87	)		—			87			—		—
Other (income) expense, net		(138	)		1,216			(34	)		59			—		1,103
Income (loss) from operations		(4,776	)		11,652			539			369			—		7,784
Intercompany interest (income) expense		(3,058	)		3,062			—			(4	)		—		—
Interest expense, net		(46	)		11,156			—			843			—		11,953
Interest expense on junior subordinated debentures		3,152			—			—			—			—		3,152
Investment income on trust common securities		(94	)		—			—			—			—		(94	)
Income (loss) before equity in subsidiaries’ income		(4,730	)		(2,566	)		539			(470	)		—		(7,227	)
Equity in subsidiaries’ income (loss)		(2,797	)		(231	)		—			—			3,028		—
Income (loss) before income taxes		(7,527	)		(2,797	)		539			(470	)		3,028		(7,227	)
Income tax provision (benefit)		(2,942	)		—			222			78			—		(2,642	)
Net income (loss)	$	(4,585	)	$	(2,797	)	$	317		$	(548	)	$	3,028	$	(4,585	)
Other comprehensive income (loss):
Foreign currency translation adjustments		—			(710	)		(21	)		(415	)		1,066		(80	)
Total comprehensive income (loss)	$	(4,585	)	$	(3,507	)	$	296		$	(963	)	$	4,094	$	(4,665	)

Condensed Consolidating Statements of Comprehensive Income (Unaudited)

For the three months ended March 31, 2012

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
Net sales	$	—		$	119,761		$	4,509	$	4,103		$	—		$	128,373
Cost of sales		—			57,642			3,529		2,418			—			63,589
Selling, general and administrative expenses		194			42,070			866		1,790			—			44,920
Acquisition and integration expense		—			152			—		—			—			152
Depreciation		—			5,845			22		22			—			5,889
Amortization		4,515			856			—		100			—			5,471
Intercompany administrative (income) expense		—			(87	)		—		86			1			—
Other (income) expense, net		(194	)		53			—		(341	)		(1	)		(483	)
Income (loss) from operations		(4,515	)		13,230			92		28			—			8,835
Intercompany interest (income) expense		(3,058	)		3,058			—		—			—			—
Interest expense, net		(106	)		10,208			—		—			—			10,102
Interest expense on junior subordinated debentures		3,152			—			—		—			—			3,152
Investment income on trust common securities		(95	)		—			—		—			—			(95	)
Income (loss) before equity in subsidiaries’ income		(4,408	)		(36	)		92		28			—			(4,324	)
Equity in subsidiaries’ income (loss)		(457	)		42			—		—			415			—
Income (loss) before income taxes		(4,865	)		6			92		28			415			(4,324	)
Income tax provision (benefit)		(2,278	)		463			38		40			—			(1,737	)
Net income (loss)	$	(2,587	)	$	(457	)	$	54	$	(12	)	$	415		$	(2,587	)
Other comprehensive income (loss):
Foreign currency translation adjustments		—			—			—		1,237			—			1,237
Total comprehensive income (loss)	$	(2,587	)	$	(457	)	$	54	$	1,225		$	415		$	(1,350	)

Consolidating Statements of Comprehensive Income

For the year ended December 31, 2012

(Amounts in thousands)

	Successor
	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	517,135		$	18,837		$	19,493		$	—		$	555,465
Cost of sales		—			247,964			14,162			12,878			12			275,016
Selling, general and administrative expenses		1,043			174,667			3,717			8,903			—			188,330
Acquisition and integration expense		—			3,031			—			—			—			3,031
Depreciation		—			21,839			88			82			—			22,009
Amortization		18,058			3,298			—			396			—			21,752
Intercompany administrative (income) expense		—			(347	)		—			347			—			—
Management and transaction fees to related party		—			155			—			—			—			155
Other (income) expense, net		(358	)		4,877			(11	)		(304	)		—			4,204
Income from operations		(18,743	)		61,651			881			(2,809	)		(12	)		40,968
Intercompany interest (income) expense		(12,232	)		12,232			—			—			—			—
Interest expense, net		(279	)		41,415			—			2			—			41,138
Interest expense on junior subordinated debentures		12,610			—			—			—			—			12,610
Investment income on trust common securities		(378	)		—			—			—			—			(378	)
Income (loss) before equity in subsidiaries’ income		(18,464	)		8,004			881			(2,811	)		(12	)		(12,402	)
Equity in subsidiaries’ income (loss)		4,786			(2,023	)		—			—			(2,763	)		—
Income (loss) before income taxes		(13,678	)		5,981			881			(2,811	)		(2,775	)		(12,402	)
Income tax provision (benefit)		(6,456	)		1,195			333			(240	)		—			(5,168	)
Net income (loss)	$	(7,222	)	$	4,786		$	548		$	(2,571	)	$	(2,775	)	$	(7,234	)
Other comprehensive income (loss):
Foreign currency translation adjustments		—			—			—			1,051			—			1,051
Total comprehensive income (loss)	$	(7,222	)	$	4,786		$	548		$	(1,520	)	$	(2,775	)	$	(6,183	)

Consolidating Statements of Comprehensive Income

For the year ended December 31, 2011

(Amounts in thousands)

	Successor
	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	465,033		$	23,634		$	17,859		$	—		$	506,526
Cost of sales		—			227,719			14,627			10,223			(78	)		252,491
Selling, general and administrative expenses		19			155,891			7,026			6,830			—			169,766
Acquisition and integration expense		—			2,642			—			163			—			2,805
Depreciation		—			21,139			121			73			—			21,333
Amortization		18,433			2,077			207			—			—			20,717
Intercompany administrative (income) expense		—			(240	)		—			238			2			—
Management and transaction fees to related party		—			110			—			—			—			110
Other (income) expense, net		(19	)		447			(16	)		441			(2	)		851
Income from operations		(18,433	)		55,248			1,669			(109	)		78			38,453
Intercompany interest (income) expense		(12,231	)		12,231			—			—			—			—
Interest expense, net		(426	)		41,105			—			—			—			40,679
Interest expense on junior subordinated debentures		12,610			—			—			—			—			12,610
Investment income on trust common securities		(378	)		—			—			—			—			(378	)
Income (loss) before equity in subsidiaries’ income		(18,008	)		1,912			1,669			(109	)		78			(14,458	)
Equity in subsidiaries’ income (loss)		2,599			836			—			—			(3,435	)		—
Income (loss) before income taxes		(15,409	)		2,748			1,669			(109	)		(3,357	)		(14,458	)
Income tax provision (benefit)		(5,552	)		149			608			116			—			(4,679	)
Net income (loss)	$	(9,857	)	$	2,599		$	1,061		$	(225	)	$	(3,357	)	$	(9,779	)
Other comprehensive income (loss):
Foreign currency translation adjustments		—			—			—			(179	)		—			(179	)
Change in derivative security value		—			624			—			—			—			624
Total comprehensive income (loss)	$	(9,857	)	$	3,223		$	1,061		$	(404	)	$	(3,357	)	$	(9,334	)

Consolidating Statements of Comprehensive Income

For the seven months ended December 31, 2010

(Amounts in thousands)

	Successor
	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	258,391		$	10,087	$	8,202		$	—		$	276,680
Cost of sales		—			124,556			7,709		4,241			48			136,554
Selling, general and administrative expenses		283			84,773			1,964		3,740			—			90,760
Acquisition and integration expense		—			11,145			—		5			—			11,150
Depreciation		—			10,924			50		33			—			11,007
Amortization		10,669			—			—		—			—			10,669
Intercompany administrative (income) expense		—			(140	)		—		140			—			—
Management and transaction fees to related party		—			—			—		—			—			—
Other (income) expense, net		(283	)		450			2		(314	)		—			(145	)
Income from operations		(10,669	)		26,683			362		357			(48	)		16,685
Intercompany interest (income) expense		(7,135	)		7,136			—		—			(1	)		—
Interest expense, net		(248	)		20,959			—		—			1			20,712
Interest on mandatorily redeemable preferred stock and management purchased options		—			—			—		—			—			—
Interest expense on junior subordinated debentures		7,356			—			—		—			—			7,356
Investment income on trust common securities		(220	)		—			—		—			—			(220	)
Income (loss) before equity in subsidiaries’ income		(10,422	)		(1,412	)		362		357			(48	)		(11,163	)
Equity in subsidiaries’ income (loss)		(977	)		435			—		—			542			—
Income (loss) before income taxes		(11,399	)		(977	)		362		357			494			(11,163	)
Income tax provision (benefit)		(3,409	)		—			138		146			—			(3,125	)
Net income (loss)	$	(7,990	)	$	(977	)	$	224	$	211		$	494		$	(8,038	)
Other comprehensive income (loss):
Foreign currency translation adjustments		—			—			—		(1	)		—			(1	)
Change in derivative security value		—			(624	)		—		—			—			(624	)
Total comprehensive income (loss)	$	(7,990	)	$	(1,601	)	$	224	$	210		$	494		$	(8,663	)

Consolidating Statements of Comprehensive Income

For the five months ended May 28, 2010

(Amounts in thousands)

	Predecessor
	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	175,470		$	6,244		$	4,002		$	—		$	185,716
Cost of sales		—			83,169			4,679			1,925			—			89,773
Selling, general and administrative expenses		19,069			60,784			1,396			1,601			—			82,850
Acquisition and integration		—			11,342			—			—			—			11,342
Depreciation		—			7,192			32			59			—			7,283
Amortization		2,663			—			15			—			—			2,678
Intercompany administrative (income) expense		—			(100	)		—			100			—			—
Management and transaction fees to related party		438			—			—			—			—			438
Other (income) expense, net		(16	)		(11	)		217			(76	)		—			114
Income (loss) from operations		(22,154	)		13,094			(95	)		393			—			(8,762	)
Intercompany interest (income) expense		(5,097	)		5,096			—			—			1			—
Interest expense, net		(154	)		8,480			—			2			(1	)		8,327
Interest on mandatorily redeemable preferred stock and management purchased options		5,488			—			—			—			—			5,488
Interest expense on junior subordinated debentures		5,254			—			—			—			—			5,254
Investment income on trust common securities		(158	)		—			—			—			—			(158	)
Income (loss) before equity in subsidiaries’ income		(27,487	)		(482	)		(95	)		391			—			(27,673	)
Equity in subsidiaries’ income (loss)		(398	)		84			—			—			314			—
Income (loss) before income taxes		(27,885	)		(398	)		(95	)		391			314			(27,673	)
Income tax provision (benefit)		(2,677	)		—			48			164			—			(2,465	)
Net income (loss)	$	(25,208	)	$	(398	)	$	(143	)	$	227		$	314		$	(25,208	)
Other comprehensive income (loss):
Foreign currency translation adjustments		—			—			—			17			—			17
Change in derivative security value		—			1,161			—			—			—			1,161
Total comprehensive income (loss)	$	(25,208	)	$	763		$	(143	)	$	244		$	314		$	(24,030	)

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet (Unaudited)

As of March 31, 2013

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	1		$	2,995	$	1,740		$	17,903		$	—		$	22,639
Restricted investments		846			—		—			—			—			846
Accounts receivable		—			84,475		(400	)		8,704			—			92,779
Inventories		—			108,982		8,035			54,156			(325	)		170,848
Deferred income taxes		8,060			—		1,474			1,259			(678	)		10,115
Other current assets		—			6,170		270			3,266			—			9,706
Total current assets		8,907			202,622		11,119			85,288			(1,003	)		306,933
Intercompany notes receivable		105,446			108,225		—			(108,225	)		(105,446	)		—
Intercompany interest receivable		3,058			809		—			—			(3,867	)		—
Investments in subsidiaries		(639,662	)		28,123		507			275,440			335,592			—
Property and equipment		—			69,146		348			14,977			—			84,471
Goodwill		418,946			24,512		3,090			21,684			280			468,512
Other intangibles		307,317			45,274		250			27,318			—			380,159
Restricted investments		3,109			—		—			—			—			3,109
Deferred income taxes		32,895			—		(472	)		739			(33,162	)		—
Deferred financing fees		—			12,095		—			—			—			12,095
Investment in trust common securities		3,261			—		—			—			—			3,261
Other assets		—			2,882		25			597			—			3,504
Total assets	$	243,277		$	493,688	$	14,867		$	317,818		$	192,394		$	1,262,044
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	—		$	31,529	$	1,145		$	15,440		$	—		$	48,114
Current portion of senior term loans		—			3,968		—			—			—			3,968
Current portion of capitalized lease and other obligations		—			625		—			—			—			625
Interest payable on junior subordinated debentures		1,019			—		—			—			—			1,019
Intercompany interest payable		—			3,058		—			809			(3,867	)		—
Accrued expenses:
Salaries and wages		—			3,841		74			208			—			4,123
Pricing allowances		—			2,773		3			556			—			3,332
Income and other taxes		(449	)		2,388		86			(80	)		—			1,945
Interest		—			10,033		—			—			—			10,033
Deferred compensation		846			—		—			—			—			846
Other accrued expenses		—			7,489		216			558			—			8,263
Total current liabilities		1,416			65,704		1,524			17,491			(3,867	)		82,268

				.
LIABILITIES AND STOCKHOLDERS’ EQUITY (CONTINUED)
Intercompany debt payable		—			105,446			—			—			(105,446	)		—
Intercompany interest payable		—			—			—			—			—			—
Long term senior term loans		—			380,958			—			—			—			380,958
Bank revolving credit		—			—			—			—			—			—
Long term portion of capitalized leases		—			345			—			—			—			345
Long term senior notes		—			272,652			—			—			—			272,652
Junior subordinated debentures		115,086			—			—			—			—			115,086
Deferred compensation		3,109			—			—			—			—			3,109
Deferred income taxes, net		144,024			—			213			9,641			(33,840	)		120,038
Other non-current liabilities		975			5,767			—			—			—			6,742
Total liabilities		264,610			830,872			1,737			27,132			(143,153	)		981,198
Common stock with put options:
Common stock, $.01 par, 5,000 shares authorized, 210.4 issued and outstanding at March 31, 2013		14,485			—			—			—			—			14,485
Commitments and Contingencies
Stockholders’ Equity:
Preferred Stock:
Preferred stock, $.01 par, 5,000 shares authorized, none issued and outstanding at March 31, 2013		—			—			—			—			—			—
Common Stock:
Common stock, $.01 par, 5,000 shares authorized, 4,789.6 issued and outstanding at March 31, 2013		—			—			50			—			(50	)		—
Additional paid-in capital		118,693			(130,742	)		11,711			293,717			1,827			295,206
Accumulated deficit		(154,511	)		(205,732	)		1,390			(3,006	)		332,223			(29,636	)
Accumulated other comprehensive income		—			(710	)		(21	)		(25	)		1,547			791
Total stockholders’ equity		(35,818	)		(337,184	)		13,130			290,686			335,547			266,361
Total liabilities and stockholders’ equity	$	243,277		$	493,688		$	14,867		$	317,818		$	192,394		$	1,262,044

Condensed Consolidating Balance Sheet (Unaudited)

As of December 31, 2012

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	1		$	62,917	$	429		$	2,201		$	—		$	65,548
Restricted investments		846			—		—			—			—			846
Accounts receivable		—			65,916		6,473			(10,045	)		—			62,344
Inventories		—			105,028		4,678			4,404			(272	)		113,838
Deferred income taxes		10,359			—		610			221			(726	)		10,464
Other current assets		—			6,526		145			1,835			—			8,506
Total current assets		11,206			240,387		12,335			(1,384	)		(998	)		261,546
Intercompany notes receivable		105,446			—		—			—			(105,446	)		—
Investments in subsidiaries		(637,376	)		27,204		—			—			610,172			—
Property and equipment		—			67,902		191			399			—			68,492
Goodwill		418,946			24,512		58			11,542			280			455,338
Other intangibles		311,832			46,047		250			8,515			—			366,644
Restricted investments		3,399			—		—			—			—			3,399
Deferred income taxes		29,492			—		(411	)		977			(30,058	)		—
Deferred financing fees		—			12,858		—			—			—			12,858
Investment in trust common securities		3,261			—		—			—			—			3,261
Other assets		—			3,521		25			709			—			4,255
Total assets	$	246,206		$	422,431	$	12,448		$	20,758		$	473,950		$	1,175,793
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	—		$	31,873	$	517		$	181		$	—		$	32,571
Current portion of senior term loans		—			3,200		—			—			—			3,200
Current portion of capitalized lease and other obligations		—			819		—			—			—			819
Additional acquisition consideration		—			—		—			—			—			—
Accrued expenses:
Salaries and wages		—			8,930		217			204			—			9,351
Pricing allowances		—			3,457		3			597			—			4,057
Income and other taxes		(625	)		2,447		25			645			—			2,492
Interest		—			2,868		—			—			—			2,868
Deferred compensation		846			—		—			—			—			846
Other accrued expenses		—			9,822		40			1,535			—			11,397
Total current liabilities		221			63,416		802			3,162			—			67,601

	.			.
LIABILITIES AND STOCKHOLDERS’ EQUITY (CONTINUED)
Intercompany debt payable		—			105,446			—		—			(105,446	)		—
Long term senior term loans		—			307,727			—		—			—			307,727
Long term portion of capitalized lease and other obligations		—			245			—		—			—			245
Long term senior notes		—			272,942			—		—			—			272,942
Junior subordinated debentures		115,132			—			—		—			—			115,132
Deferred compensation		3,399			—			—		—			—			3,399
Deferred income taxes, net		146,042			—			219		2,472			(30,784	)		117,949
Other non-current liabilities		714			5,473			—		—			—			6,187
Total liabilities		265,508			755,249			1,021		5,634			(136,230	)		891,182
Common stock with put options:
Common stock, $.01 par, 5,000 shares authorized, 198.3 issued and outstanding at December 31, 2012		14,116			—			—		—			—			14,116
Commitments and Contingencies
Stockholders’ Equity:
Preferred Stock:
Preferred stock, $.01 par, 5,000 shares authorized, none issued and outstanding at December 31, 2012		—			—			—		—			—			—
Common Stock:
Common stock, $.01 par, 5,000 shares authorized, 4,801.7 issued and outstanding at December 31, 2012		—			—			50		—			(50	)		—
Additional paid-in capital		117,261			(131,642	)		10,304		17,192			281,560			294,675
Accumulated deficit		(150,679	)		(201,176	)		1,073		(2,458	)		328,189			(25,051	)
Accumulated other comprehensive loss		—			—			—		390			481			871
Total stockholders’ equity		(33,418	)		(332,818	)		11,427		15,124			610,180			270,495
Total liabilities and stockholders’ equity	$	246,206		$	422,431		$	12,448	$	20,758		$	473,950		$	1,175,793

Consolidating Balance Sheet

As of December 31, 2012

(Amounts in thousands)

	Successor
	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	1		$	62,917	$	429		$	2,201		$	—		$	65,548
Restricted investments		846			—		—			—			—			846
Accounts receivable		—			65,916		6,473			(10,045	)		—			62,344
Inventories		—			105,028		4,678			4,404			(272	)		113,838
Deferred income taxes		10,359			—		610			221			(726	)		10,464
Other current assets		—			6,526		145			1,835			—			8,506
Total current assets		11,206			240,387		12,335			(1,384	)		(998	)		261,546
Intercompany notes receivable		105,446			—		—			—			(105,446	)		—
Investments in subsidiaries		(637,376	)		27,204		—			—			610,172			—
Property and equipment		—			67,902		191			399			—			68,492
Goodwill		418,946			24,512		58			11,542			280			455,338
Other intangibles		311,832			46,047		250			8,515			—			366,644
Restricted investments		3,399			—		—			—			—			3,399
Deferred income taxes		29,492			—		(411	)		977			(30,058	)		—
Deferred financing fees		—			12,858		—			—			—			12,858
Investment in trust common securities		3,261			—		—			—			—			3,261
Other assets		—			3,521		25			709			—			4,255
Total assets	$	246,206		$	422,431	$	12,448		$	20,758		$	473,950		$	1,175,793
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	—		$	31,873	$	517		$	181		$	—		$	32,571
Current portion of senior term loans		—			3,200		—			—			—			3,200
Current portion of capitalized lease and other obligations		—			819		—			—			—			819
Accrued expenses:
Salaries and wages		—			8,930		217			204			—			9,351
Pricing allowances		—			3,457		3			597			—			4,057
Income and other taxes		(625	)		2,447		25			645			—			2,492
Interest		—			2,868		—			—			—			2,868
Deferred compensation		846			—		—			—			—			846
Other accrued expenses		—			9,822		40			1,535			—			11,397
Total current liabilities		221			63,416		802			3,162			—			67,601

	Successor
	Guarantors The  Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
LIABILITIES AND STOCKHOLDERS’ EQUITY (CONTINUED)
Intercompany debt payable		—			105,446			—		—			(105,446	)		—
Long term senior term loans		—			307,727			—		—			—			307,727
Long term portion of capitalized lease and other obligations		—			245			—		—			—			245
Long term senior notes		—			272,942			—		—			—			272,942
Junior subordinated debentures		115,132			—			—		—			—			115,132
Deferred compensation		3,399			—			—		—			—			3,399
Deferred income taxes, net		146,042			—			219		2,472			(30,784	)		117,949
Other non-current liabilities		714			5,473			—		—			—			6,187
Total liabilities		265,508			755,249			1,021		5,634			(136,230	)		891,182
Common stock with put options:
Common stock, $.01 par, 5,000 shares authorized, 198.4 issued and outstanding at December 31, 2012.		14,116			—			—		—			—			14,116
Commitments and Contingencies
Stockholders’ Equity:
Preferred Stock:
Preferred stock, $.01 par, 5,000 shares authorized, none issued and outstanding at December 31, 2012.		—			—			—		—			—			—
Common Stock:
Common stock, $.01 par, 5,000 shares authorized, 4,801.6 issued and outstanding at December 31, 2012.		—			—			50		—			(50	)		—
Additional paid-in capital		117,261			(131,642	)		10,304		17,192			281,560			294,675
Accumulated deficit		(150,679	)		(201,176	)		1,073		(2,458	)		328,189			(25,051	)
Accumulated other comprehensive loss		—			—			—		390			481			871
Total stockholders’ equity		(33,418	)		(332,818	)		11,427		15,124			610,180			270,495
Total liabilities and stockholders’ equity	$	246,206		$	422,431		$	12,448	$	20,758		$	473,950		$	1,175,793

Consolidating Balance Sheet

As of December 31, 2011

(Amounts in thousands)

	Successor
	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	1		$	8,852	$	547		$	2,627		$	—		$	12,027
Restricted investments		364			—		—			—			—			364
Accounts receivable		—			59,429		1,273			2,863			—			63,565
Inventories		—			95,757		5,117			3,361			(260	)		103,975
Deferred income taxes		8,176			1,676		587			211			(742	)		9,908
Other current assets		—			10,620		3,976			(8,950	)		—			5,646
Total current assets		8,541			176,334		11,500			112			(1,002	)		195,485
Intercompany notes receivable		105,446			—		—			—			(105,446	)		—
Investments in subsidiaries		(628,481	)		91,378		—			—			537,103			—
Property and equipment		—			65,897		174			271			—			66,342
Goodwill		419,752			26,409		58			10,944			280			457,443
Other intangibles		329,891			47,655		250			8,406			—			386,202
Restricted investments		3,390			—		—			—			—			3,390
Deferred income taxes		28,200			321		(108	)		561			(28,974	)		—
Deferred financing fees		—			13,055		—			—			—			13,055
Investment in trust common securities		3,261			—		—			—			—			3,261
Other assets		—			1,676		25			972			—			2,673
Total assets	$	270,000		$	422,725	$	11,899		$	21,266		$	401,961		$	1,127,851
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	—		$	29,997	$	655		$	621		$	—		$	31,273
Current portion of senior term loans		—			3,200		—			—			—			3,200
Current portion of capitalized lease obligations		—			31		—			—			—			31
Additional acquisition consideration		—			12,387		—			—			—			12,387
Accrued expenses:
Salaries and wages		—			5,303		110			215			—			5,628
Pricing allowances		—			5,291		—			437			—			5,728
Income and other taxes		(549	)		2,342		15			445			—			2,253
Interest		—			2,203		—			—			—			2,203
Deferred compensation		364			—		—			—			—			364
Other accrued expenses		—			8,762		39			406			—			9,207
Total current liabilities		(185	)		69,516		819			2,124			—			72,274

Consolidating Balance Sheet

As of December 31, 2011

(Amounts in thousands)

	Successor
	Guarantors The  Hillman Companies, Inc.			Issuer The Hillman Group,  Inc.			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
LIABILITIES AND STOCKHOLDERS’ EQUITY (CONTINUED)
Intercompany debt payable		—			105,446			—		—			(105,446	)		—
Long term senior term loans		—			310,550			—		—			—			310,550
Bank revolving credit		—			—			—		—			—			—
Long term portion of capitalized lease obligations		—			103			—		—			—			103
Long term senior notes		—			204,248			—		—			—			204,248
Junior subordinated debentures		115,411			—			—		—			—			115,411
Deferred compensation		3,390			—			—		—			—			3,390
Deferred income taxes, net		149,704			448			199		3,253			(29,716	)		123,888
Other non-current liabilities		—			7,193			—		—			—			7,193
Total liabilities		268,320			697,504			1,018		5,377			(135,162	)		837,057
Common stock with put options:
Common stock, $.01 par, 5,000 shares authorized, 198.4 issued and outstanding at December 31, 2011.		12,247			—			—		—			—			12,247
Commitments and Contingencies
Stockholders’ Equity:
Preferred Stock:
Preferred stock, $.01 par, 5,000 shares authorized, none issued and outstanding at December 31, 2011.		—			—			—		—			—			—
Common Stock:
Common stock, $.01 par, 5,000 shares authorized, 4,801.6 issued and outstanding at December 31, 2011.		—			—			50		—			(50	)		—
Additional paid-in capital		117,221			(68,624	)		10,306		16,437			221,204			296,544
Accumulated deficit		(127,788	)		(206,155	)		525		113			315,488			(17,817	)
Accumulated other comprehensive loss		—			—			—		(661	)		481			(180	)
Total stockholders’ equity		(10,567	)		(274,779	)		10,881		15,889			537,123			278,547
Total liabilities and stockholders’ equity	$	270,000		$	422,725		$	11,899	$	21,266		$	401,961		$	1,127,851

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows (Unaudited)

For the three months ended March 31, 2013

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust- ments			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(1,788	)	$	(2,513	)	$	317		$	(548	)	$	(53	)	$	(4,585	)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization		4,515			6,120			15			338			—			10,988
Dispositions of property and equipment		—			9			—			—			—			9
Deferred income tax provision (benefit)		(3,122	)		—			(809	)		898			—			(3,033	)
Deferred financing and original issue discount amortization		(46	)		629			—			—			—			583
Stock-based compensation expense		261			—			—			—			—			261
Other non-cash interest and change in value of interest rate swap		—			(207	)		—			—			—			(207	)
Changes in operating items:
Accounts receivable		—			(7,269	)		(2,842	)		(3,065	)		—			(13,176	)
Inventories		—			(3,954	)		(3,357	)		5,299			53			(1,959	)
Other assets		—			(10,295	)		9,590			2,912			—			2,207
Accounts payable		—			(344	)		628			2,455			—			2,739
Interest payable on junior subordinated debentures		1,019			—			—			—			—			1,019
Other accrued liabilities		176			2,264			94			(930	)		(3,867	)		(2,263	)
Other items, net		(1,015	)		(8,110	)		(2,316	)		8,395			3,867			821
Net cash provided by (used for) operating activities		—			(23,670	)		1,320			15,754			—			(6,596	)
Cash flows from investing activities:
Paulin acquisition		—			(103,416	)		—			—			—			(103,416	)
Capital expenditures		—			(6,590	)		(9	)		(52	)		—			(6,651	)
Net cash used for investing activities		—			(110,006	)		(9	)		(52	)		—			(110,067	)
Cash flows from financing activities:
Borrowings of senior term loans		—			76,800			—			—			—			76,800
Repayments of senior term loans		—			(800	)		—			—			—			(800	)
Discount on senior term loans		—			(2,152	)		—			—			—			(2,152	)
Principal payments under capitalized lease obligations		—			(94	)		—			—			—			(94	)
Net cash used for financing activities		—			73,754			—			—			—			73,754
Net (decrease) increase in cash and cash equivalents		—			(59,922	)		1,311			15,702			—			(42,909	)
Cash and cash equivalents at beginning of period		1			62,917			429			2,201			—			65,548
Cash and cash equivalents at end of period	$	1		$	2,995		$	1,740		$	17,903			—		$	22,639

Condensed Consolidating Statement of Cash Flows (Unaudited)

For the three months ended March 31, 2012

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust- Ments			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(2,130	)	$	(486	)	$	54		$	(12	)	$	(13	)	$	(2,587	)
Adjustments to reconcile net loss to net cash (used for) provided by operating activities:
Depreciation and amortization		4,515			6,701			22			122			—			11,360
Dispositions of property and equipment		—			—			—			—			—			—
Deferred income tax provision (benefit)		(2,435	)		446			37			137			—			(1,815	)
Deferred financing and original issue discount amortization		(107	)		605			—			—			—			498
Other non-cash interest and change in value of interest rate swap		—			(163	)		—			—			—			(163	)
Changes in operating items:
Accounts receivable		—			(7,745	)		(241	)		(651	)		—			(8,637	)
Inventories		—			(2,811	)		679			(211	)		13			(2,330	)
Other assets		—			9			(400	)		(172	)		—			(563	)
Accounts payable		—			2,684			(5	)		(97	)		—			2,582
Other accrued liabilities		153			5,019			(29	)		152			(3,058	)		2,237
Other items, net		4			(3,229	)		—			(127	)		3,058			(294	)
Net cash provided by (used for) operating activities		—			1,030			117			(859	)		—			288
Cash flows from investing activities:
Proceeds from sale of property and equipment		—			—			3			—			—			3
Capital expenditures		—			(5,371	)		(6	)		(70	)		—			(5,447	)
Net cash used for investing activities		—			(5,371	)		(3	)		(70	)		—			(5,444	)
Cash flows from financing activities:
Repayments of senior term loans		—			(800	)		—			—			—			(800	)
Borrowings of revolving credit loans		—			14,000			—			—			—			14,000
Payments of additional acquisition consideration		—			(12,387	)		—			—			—			(12,387	)
Principal payments under capitalized lease obligations		—			(7	)		—			—			—			(7	)
Borrowings of senior notes		—			—			—			—			—			—
Premium on senior notes		—			—			—			—			—			—
Financing fees, net		—			—			—			—			—			—
Net cash provided by financing activities		—			806			—			—			—			806
Net (decrease) increase in cash and cash equivalents		—			(3,535	)		114			(929	)		—			(4,350	)
Cash and cash equivalents at beginning of period		1			8,852			547			2,627			—			12,027
Cash and cash equivalents at end of period	$	1		$	5,317		$	661		$	1,698			—		$	7,677

Consolidating Statement of Cash Flows

For the year ended December 31, 2012

(Amounts in thousands)

	Successor
	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(12,008	)	$	6,809		$	548		$	(2,571	)	$	(12	)	$	(7,234	)
Adjustments to reconcile net loss to net cash (used for) provided by operating activities:
Depreciation and amortization		18,058			25,137			88			478			—			43,761
Dispositions of property and equipment		—			271			21			—			—			292
Deferred income tax provision (benefit)		(6,382	)		1,686			300			(1,207	)		—			(5,603	)
Deferred financing and original issue discount amortization		(279	)		2,459			—			—			—			2,180
Stock-based compensation expense		714			—			—			—			—			714
Other non-cash interest and change in value of interest rate swap		—			(787	)		—			—			—			(787	)
Changes in operating items:
Accounts receivable		—			2,431			(50	)		(1,005	)		—			1,376
Inventories		—			(9,788	)		439			(1,043	)		12			(10,380	)
Other assets		—			(6,003	)		(1,319	)		3,391			—			(3,931	)
Accounts payable		—			(568	)		(138	)		(440	)		—			(1,146	)
Other accrued liabilities		(76	)		3,623			121			1,478			—			5,146
Other items, net		(27	)		(1,645	)		(3	)		705			—			(970	)
Net cash provided by (used for) operating activities		—			23,625			7			(214	)		—			23,418
Cash flows from investing activities:
Proceeds from sale of property and equipment		—			—			3			—			—			3
Capital expenditures		—			(23,973	)		(128	)		(212	)		—			(24,313	)
Net cash used for investing activities		—			(23,973	)		(125	)		(212	)		—			(24,310	)
Cash flows from financing activities:
Repayments of senior term loans		—			(3,200	)		—			—			—			(3,200	)
Borrowings of revolving credit loans		—			19,000			—			—			—			19,000
Repayments of revolving credit loans		—			(19,000	)		—			—			—			(19,000	)
Payment of additional acquisition consideration		—			(12,387	)		—			—			—			(12,387	)
Principal payments under capitalized lease obligations		—			(47	)		—			—			—			(47	)
Borrowings under other credit obligations		—			1,119			—			—			—			1,119
Repayments of other credit obligations		—			(297	)		—			—			—			(297	)
Borrowings of senior notes		—			65,000			—			—			—			65,000
Premium on senior notes		—			4,225			—			—			—			4,225
Net cash (used for) provided by financing activities		—			54,413			—			—			—			54,413
Net (decrease) increase in cash and cash equivalents		—			54,065			(118	)		(426	)		—			53,521
Cash and cash equivalents at beginning of period		1			8,852			547			2,627			—			12,027
Cash and cash equivalents at end of period	$	1		$	62,917		$	429		$	2,201		$	—		$	65,548

Consolidating Statement of Cash Flows

For the year ended December 31, 2011

(Amounts in thousands)

	Successor
	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(12,456	)	$	1,763		$	1,061		$	(225	)	$	78		$	(9,779	)
Adjustments to reconcile net loss to net cash (used for) provided by operating activities:
Depreciation and amortization		18,433			23,216			328			73			—			42,050
Dispositions of property and equipment		—			42			11			—			—			53
Deferred income tax provision (benefit)		(8,866	)		(203	)		1,350			3,085			—			(4,634	)
Deferred financing and original issue discount amortization		(803	)		2,814			—			—			—			2,011
Other non-cash interest and change in value of interest rate swap		—			1,250			—			—			—			1,250
Changes in operating items:
Accounts receivable		—			(6,673	)		2,162			70			—			(4,441	)
Inventories		—			(7,647	)		5,527			23			(78	)		(2,175	)
Other assets		—			(4,691	)		92			1,348			—			(3,251	)
Accounts payable		—			387			(4	)		289			—			672
Other accrued liabilities		(265	)		4,053			(1,708	)		211			—			2,291
Other items, net		3,957			8,989			(9,361	)		(3,419	)		—			166
Net cash provided by (used for) operating activities		—			23,300			(542	)		1,455			—			24,213
Cash flows from investing activities:
Payment for TagWorks acquisition		—			(40,271	)		—			—			—			(40,271	)
Payment for Ook acquisition		—			(15,323	)		—			—			—			(15,323	)
Capital expenditures		—			(17,778	)		(30	)		(127	)		—			(17,935	)
Other, net		—			—			—			—			—			—
Net cash used for investing activities		—			(73,372	)		(30	)		(127	)		—			(73,529	)
Cash flows from financing activities:
Borrowings of senior term loans		—			30,000			—			—			—			30,000
Repayments of senior term loans		—			(2,975	)		—			—			—			(2,975	)
Discount on senior term loans		—			(2,000	)		—			—			—			(2,000	)
Borrowings of revolving credit loans		—			9,444			—			—			—			9,444
Repayments of revolving credit loans		—			(21,444	)		—			—			—			(21,444	)
Payment of additional acquisition consideration		—			(12,490	)		—			—			—			(12,490	)
Principal payments under capitalized lease obligations		—			(30	)		—			—			—			(30	)
Borrowings of senior notes		—			50,000			—			—			—			50,000
Premium on senior notes		—			4,625			—			—			—			4,625
Financing fees, net		—			(1,372	)		—			—			—			(1,372	)
Net cash (used for) provided by financing activities		—			53,758			—			—			—			53,758
Net (decrease) increase in cash and cash equivalents		—			3,686			(572	)		1,328			—			4,442
Cash and cash equivalents at beginning of period		1			5,166			1,119			1,299			—			7,585
Cash and cash equivalents at end of period	$	1		$	8,852		$	547		$	2,627		$	—		$	12,027

Consolidating Statement of Cash Flows

For the seven months ended December 31, 2010

(Amounts in thousands)

	Successor
	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group,  Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(7,013	)	$	(1,401	)	$	224		$	211		$	(59	)	$	(8,038	)
Adjustments to reconcile net loss to net cash (used for) provided by operating activities:
Depreciation and amortization		10,669			10,924			50			33			—			21,676
Dispositions of property and equipment		—			60			—			—			—			60
Deferred income tax provision (benefit)		(8,031	)		(1,125	)		176			3,320			—			(5,660	)
Deferred financing and original issue discount amortization		2,590			(1,296	)		—			—			—			1,294
Other non-cash interest and change in value of interest rate swap		—			392			—			—			—			392
Changes in operating items:
Accounts receivable		—			14,195			727			(236	)		—			14,686
Inventories		—			(11,030	)		(100	)		(590	)		59			(11,661	)
Other assets		—			(2,626	)		38			1,444			(12	)		(1,156	)
Accounts payable		—			7,229			(374	)		196			—			7,051
Other accrued liabilities		(69	)		(11,228	)		4			417			5,096			(5,780	)
Other items, net		199,620			(214,228	)		21,567			(3,540	)		(5,084	)		(1,665	)
Net cash provided by (used for) operating activities		197,766			(210,134	)		22,312			1,255			—			11,199
Cash flows from investing activities:
Payments for Quick Tag and Laser Key licenses		—			(12,750	)		—			—			—			(12,750	)
Payment for Servalite acquisition		—			—			(21,335	)								(21,335	)
Capital expenditures		—			(9,518	)		(64	)		(93	)		—			(9,675	)
Other, net		—			—			—			—			—			—
Net cash used for investing activities		—			(22,268	)		(21,399	)		(93	)		—			(43,760	)
Cash flows from financing activities:
Borrowings of senior term loans		—			290,000			—			—			—			290,000
Repayments of senior term loans		—			(149,756	)		—			—			—			(149,756	)
Borrowings of revolving credit loans		—			12,600			—			—			—			12,600
Repayments of revolving credit loans		—			(600	)		—			—			—			(600	)
Principal payments under capitalized lease obligations		—			(50	)		—			—			—			(50	)
Repayments of unsecured subordinated notes		—			(49,820	)		—			—			—			(49,820	)
Borrowings of senior notes		—			150,000			—			—			—			150,000
Financing fees, net		—			(15,729	)		—			—			—			(15,729	)
Purchase predecessor equity securities		(506,407	)		—			—			—			—			(506,407	)
Proceeds from sale of successor equity securities		308,641			—			—			—			—			308,641
Net cash (used for) provided by financing activities		(197,766	)		236,645			—			—			—			38,879
Net (decrease) increase in cash and cash equivalents		—			4,243			913			1,162			—			6,318
Cash and cash equivalents at beginning of period		1			923			206			137			—			1,267
Cash and cash equivalents at end of period	$	1		$	5,166		$	1,119		$	1,299		$	—		$	7,585

Consolidating Statement of Cash Flows

For the five months ended May 28, 2010

(Amounts in thousands)

	Predecessor
	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Cash flows from operating activities:
Net loss	$	(24,810	)	$	(493	)	$	(143	)	$	227		$	11		$	(25,208	)
Adjustments to reconcile net loss to net cash (used for) provided by operating activities:
Depreciation and amortization		2,663			7,192			47			59			—			9,961
Dispositions of property and equipment		—			74			—			—			—			74
Deferred income tax provision (benefit)		(2,757	)		733			45			58			—			(1,921	)
Deferred financing and original issue discount amortization		(155	)		670			—			—			—			515
Interest on mandatorily redeemable preferred stock and management purchased options		5,488			—			—			—			—			5,488
Stock-based compensation expense		19,053			—			—			—			—			19,053
Changes in operating items:
Accounts receivable		—			(15,724	)		(658	)		(434	)		—			(16,816	)
Inventories		—			2,383			477			110			(11	)		2,959
Other assets		—			597			(178	)		(307	)		12			124
Accounts payable		—			1,890			(71	)		11			—			1,830
Other accrued liabilities		(332	)		9,561			176			43			(5,096	)		4,352
Other items, net		850			(6,843	)		—			15			5,084			(894	)
Net cash provided by (used for) operating activities		—			40			(305	)		(218	)		—			(483	)
Cash flows from investing activities:
Capital expenditures		—			(5,396	)		(7	)		(8	)		—			(5,411	)
Other, net		—			—			—			—			—			—
Net cash used for investing activities		—			(5,396	)		(7	)		(8	)		—			(5,411	)
Cash flows from financing activities:
Repayments of senior term loans		—			(9,544	)		—			—			—			(9,544	)
Principal payments under capitalized lease obligations		—			(459	)		—			—			—			(459	)
Net cash used for financing activities		—			(10,003	)		—			—			—			(10,003	)
Net decrease in cash and cash equivalents		—			(15,359	)		(312	)		(226	)		—			(15,897	)
Cash and cash equivalents at beginning of period		1			16,282			518			363			—			17,164
Cash and cash equivalents at end of period	$	1		$	923		$	206		$	137		$	—		$	1,267